Stifel Stifel GMP on Monday reiterated its buy rating on the shares of Doman Building Materials Group (DBM.TO) and its C$11.00 price target following fourth-quarter results from the company.
"We believe 2024E is set up to be a better-than-expected year for the sector with resilient demand and improving pricing, which leads to improved top line growth and resilient margins. Market conditions appear to be better than feared which is bolstered by: 1) healthier single family starts and R&R activities; 2) resilient consumer spending; and 3) pricing recovery. We are forecasting revenue growth of 5.4% and 4.3% in 2024E and 2025E with EBITDA margin assumptions at 7.8% and 7.9%. Our target price of $11.00/sh and BUY rating are maintained," analyst Ian Gillies wrote